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^ or cut out the middleman and just make the minimum wage a survivable wage

A still more interesting idea: everyone gets given a liveable state grant regardless of their means or state of employment

Advantages:

• There's an incentive to earn money on top of this as it wouldn't stop you from receiving the grant. You get to keep what you earn. Therefore...
  
• Nobody has to lie to get their benefits.
  
• Since everyone gets the grant nobody has to feel debased in claiming it just to survive.
  
• Saves a lot of cash on the complex administration of (some) benefits
  
  

Disadvantages:

• Inflation?
  
• Immigration?
  
• Still have to do quite a lot of work administering other benefits (disability, child etc.)